Embedded Quality (EQ) creates a link between individual performance and organizational goals. This linkage is achieved through a common set of attributes that both national quality reviewers in FSEQ and front-line managers use to evaluate the quality of case work.

EQ reviews focus on whether the examiner took the right actions at the right time while protecting taxpayer rights.

National quality reviewers in FSEQ use the National Quality Review System (NQRS), an automated web-based system, to record results from case reviews for the following programs:

Reports generated from NQRS provide data which may be used to evaluate organizational processes, procedures and successes, and identify areas in need of improvement.

The Quality Knowledge Base contains Examination Quality program information, including Embedded Quality Review System (EQRS) and National Quality Review System (NQRS) system guidance.

The Quality Knowledge Base is located at https://portal.ds.irsnet.gov/sites/vl115/pages/default.aspx.

Managers use the Embedded Quality Review System (EQRS) database to evaluate employee performance. For more information regarding front-line manager use of EQRS see IRM 1.4.40.3.6, Performance Feedback..

IRM 1.2.1.2.2, Policy Statement 1-2, Principles of Quality, provides the authoritative basis for the procedures in this IRM.

26 CFR 801.6(b) states that quality measures focus on whether IRS personnel:

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about the TBOR, see https://www.irs.gov/taxpayer-bill-of-rights.

Listed below are the primary roles and responsibilities of the FSEQ program manager, quality analysts, management and quality reviewers involved in the quality review process.

Program reports are available on NQRS by selecting Reports from the main menu screen.

FSEQ also generates quarterly performance reports for stakeholders. These reports provide data to aid in:

An overall quality score serves as the Balanced Measure for Business Results – Quality. This measure is reported to various levels of the organization and to external stakeholders such as Congress.

Access to EQRS and NQRS data and reports is controlled based on the user’s assigned permission level, assigned function and assigned organization. System coordinators are responsible for assigning users to the appropriate permission level based on the user’s role in the organization. Users are only given privileges that are required for the user to perform their jobs. Users do not have access to security and other functions/features that require elevated privileges.

Access to EQRS and NQRS is through the Business Entitlement Access Request System (BEARS) at https://bears.iam.int.for.irs.gov/home/Index.

EQRS/NQRS systems contain input validation checks to ensure input accuracy and completeness by:

Operations Support, Technology Solutions, Collection Systems provide core information technology management and support services for both EQRS and NQRS. They are responsible for:

The following table contains commonly used terms and acronyms found in this IRM:

Field and Specialty Exam job aids are reference tools used by Field and Specialty Exam management and FSEQ review staff to aid in rating the quality attributes in a uniform and consistent manner. Guidelines in the job aids align the EQ concepts to current Field and Specialty Exam procedures. IRM references support each quality attribute.

Headquarters Examination, Examination Field and Campus Policy is responsible for ensuring the consistency of the Field and Office Exam job aids and training materials, along with the IRM and other guidelines.

Headquarters Examination, Specialty Policy is responsible for ensuring the consistency of the Specialty Exam job aids and training materials, along with the IRM and other guidelines.

Links to the job aids may be found on the Quality Knowledge Base which is located at https://portal.ds.irsnet.gov/sites/vl115/pages/default.aspx.

Quality attributes address whether:

Quality attributes are organized into measurement categories which allow quality data to be generated based on the following criteria:

Quality attributes can also be organized by the following DCI attribute groups:

Reviewers evaluate case work utilizing attributes specific to their Specialized Product Review Group (SPRG).

Reviewers rate all attributes that apply to the case being reviewed.

Attribute ratings must be accurate and consistent. Reviewers must strive for consistency in rating similar case actions.

The scoring system provides for the equal weighting of each attribute. Each attribute is rated as Yes, No, or in some instances Not Applicable.

The quality score is computed as a percentage. The percentage is calculated as total Yes ratings divided by total Yes and No ratings. A total score of 100 percent is possible for each case.

Either a physical or electronic case may be assigned for review. If a physical case file is assigned for review, the physical case file is the primary source.

Documents found in the electronic case file might not be in the physical case file because they were not printed or were inadvertently removed. If there are indications in the physical case file that electronic documents exist, reviewers should access the electronic file to determine if additional information is available.

Electronic case files for the Excise, Employment and Estate and Gift programs are located on the Issue Management System (IMS) Team Site.

Electronic case files for Field Exam are located in Correspondence Examination Automation Support (CEAS).

The first input section of the DCI is the header fields that capture basic case information. The bold header fields are mandatory and must be entered to complete the DCI.

Header information is categorized into four groupings:

Process Measures data may be analyzed in conjunction with the quality attributes. Process Measures data fields capture:

When a quality attribute is rated not met, at least one reason code, if available, must be selected that supports the not met rating.

The most appropriate reason code should be selected for the error. Multiple reason codes may be selected for multiple errors, if warranted.

A narrative is required, describing the facts, for each not met attribute rating.

Reviewers should contact their manager when other is used regularly as a reason code to determine if additional reason codes should be added to NQRS.

Reviewer narratives must be thorough, providing clear, concise, and specific descriptions of any errors, offering sufficient detail to allow for specific recommendations for improvement.

Reviewers must avoid using canned statements in their narratives.

Attribute narratives should:

Reviewer should not include taxpayer specific or Personally Identifiable Information (PII) data in the narrative comments.

For physical case files selected for review, after the case has been processed by CCP and updated to Status Code 90 (Closed), CCP will ship the physical file to Field and Office Quality (FEQ) support staff. Upon receipt from CCP, the FEQ support staff will enter the case into the unassigned inventory for assignment to a reviewer.

For electronic case files selected for review, after the case has been processed by CCP and updated to Status Code 90, the FEQ support staff will enter the case into the unassigned inventory for assignment to a reviewer.

For physical case files selected for review, after the case has been processed by CCP and updated to Status Code 90, CCP will ship the physical file to Specialty Exam Quality (SEQ) support staff. Upon receipt from CCP, the SEQ support staff will enter the case into the unassigned inventory for assignment to a reviewer.

For electronic case files selected for review, after the case has been processed by CCP and updated to Status Code 90, the SEQ support staff will enter the case into the unassigned inventory for assignment to a reviewer.

Form 8300 cases are selected from the weekly extract of closed cases maintained by Enterprise Computing Center - Detroit (ECC-DET) and shipped to SEQ.

Title 31 cases are selected from the closed case Title 31 database using the NQ interface and shipped to SEQ.

The ERCS Sample Review program may select unagreed cases for review.

Technical Services is responsible for sending physical unagreed Appeals cases and physical unagreed Appeals cases with at least one agreed/no-change year that are selected for sample review to the appropriate review site. These cases are high priority and procedures are established to ensure their timely review. Refer to IRM 4.8.2.3.4, Technical Services, Case Processing for more information.

For unagreed electronic Appeals cases and unagreed electronic Appeals cases with at least one agreed/no-change year, the FEQ support staff will add the electronic case to review inventory.

When “open” cases are transmitted to the review site by Technical Services, they should be updated to Status Code 23, Sample Review and Review Type 33 on ERCS.

Reviewers will complete their review of the open unagreed case within 10 business days and return the physical case files to Technical Services via ground mail service. When the review of an electronic case file has been completed, the group manager will e-mail the Technical Services manager to advise that the review is complete.

Appeals policy requires a non-docketed case to have at least 365 days remaining on the statute of limitations as of the date the case is received in Appeals. If a non-docketed case is selected for sample review there needs to be an additional 30 days on the statute of limitations to allow for the completion of the review and for Technical Services to receive and prepare the case for closing to Appeals.

Cases that do not meet this criteria will be deselected and returned to Technical Services.

Reviewers prepare an Appeals Advisory Memo to Technical Services when tax application/computation errors are found or if any taxpayer confidentiality issues are discovered. Technical Services decides whether to forward the case to Appeals or return it to the group.

The ERCS Sample Review program may also select unagreed cases closing for issuance of statutory notice of deficiency as part of the random sample of cases for review.

Technical Services will affix the sample selection sheet to these case files and update all returns with an account transfer out freeze code "M" .

If the case defaults, Technical Services will send the case to CCP. The freeze code "M" along with the Sample Selection Sheet will alert CCP that the case must be sent to the appropriate review site.

CCP will update the case to Status Code 90 (Closed), remove the freeze code "M" and forward the physical case(s) to FEQ support staff. For electronic case files, when CCP updates the case to Status Code 90 (Closed) and removes the freeze code "M " , the FEQ support staff will add the case to unassigned inventory.

Physical cases selected for review should be transmitted to their respective review site.

Field Exam physical cases are shipped to FEQ support staff.

Specialty Exam physical cases are shipped to SEQ support staff.

After screening, physical case files are shipped directly to reviewers.

Closed case files should remain intact after they leave the Employment, Estate and Gift and Excise groups and Technical Services. Dismantling, purging, or discarding documents from a case file could negatively affect the case if legal actions are pursued.

A separate Form 3210, Document Transmittal shall be attached to the closed case files. Each selected case shall include the full physical case file.

Each review site will maintain an inventory control system. This will facilitate an orderly flow of case files and supporting documents between closing units, the review site, and the reviewer.

All closed (Status Code 90) physical case files along with Form 3210 are transported via ground shipment for final disposition.

SEQ reviewers will also follow guidance found in the Technical Services IRM 4.8.2.9’Returning Cases to the Field, which outlines return criteria for cases with potential for significant impact to taxpayer compliance or to tax revenues.

Additional guidance is provided for SEQ for cases that do not close to Technical Services.

SEQ reviewer will take the following actions for Employment, Estate and Gift and Excise cases meeting the case return criteria found in IRM 4.8.2.9.1 ,Case Return Criteria

SEQ front-line manager will send case return memo to the quality analyst for concurrence.

The quality analyst will send the case return memo to the Specialty field front-line manager with a copy to the territory manager, program policy analyst responsible for quality and field technical advisor.

The Specialty field front-line manager will provide SEQ front-line manager with shipping instructions.

SEQ reviewer will ship case per instructions from Specialty field group front-line manager following current shipping guidelines.

The returned case will remain in Status Code 90, Closed. The decision to act on the SEQ reviewer recommendations is the responsibility of the Specialty field front-line and territory manager. The Specialty field front-line manager is responsible for shipping the case to files once any needed actions are completed. Document all follow-up actions in the case file.